C.I. Medical develops, manufactures, and sells dental care products in Japan. The company offers toothbrushes; and other dental care products through mail order sales. It serves medical cooperatives, dental clinics, dental associations, health centers, dental colleges, hospitals, veterinary clinics, nursing home care facilities, and dental dealers. C.I. Medical Co.,Ltd. was founded in 2000 and is headquartered in Hakusan, Japan. This week, I fundamentally analyze CI Medical’s stock. I review CI Medical’s business, look at its key ratios, derive the intrinsic value using Discounted Cash Flow (DCF) analysis, and go through Li Lu’s 4 checklist items. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account the 2020 free cash flow of 3,701 million JPY figure, a 8% growth rate of FCF (growth for the next 10 years), 10% discount rate, 3% long term growth rate (growth from 10 year mark to perpetuity), 10 million shares outstanding, and no long term debt, the DCF analysis yields us an intrinsic value of 7,800.78 JPY per share.
0:00 Introduction / Business Overview
1:35 Key Ratios Analysis
10:04 Discounted Cash Flow Analysis / Intrinsic Value
CI Medical’s Website: here
Morningstar Key Ratios Link: here.
Useful Resources here.
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